Six Environmental Forces
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Pressure to create laws
Since marketing activities are a vital part of the total business structure, mar
Consumer wants, learning, motives etc. are influenced by opinion leaders,
person's family, reference groups, social class and culture.
Opinion leaders-Spokespeople etc. Marketers try to attract opinion
leaders.they actually use (pay) spokes
Seven phases to new product development:
New Product Strategy DevelopmentOnly a few ideas are good enough to
reach commercialization. Ideas can be generated by chance, or by systematic
approach. Need a purposeful, focused effort to identify new ways to
Selecting a Brand Name
Criteria for choosing a name:
Easy for customers to say, spell and recall (inc. foreigners)
Indicate products major benefits
Should be distinctive
Compatible with all products in product line
Used and recognized in all types of medi
Sales Promotion Methods
Consumer Sales Promotion Techniques
-encourage/stimulate customers to patronize a specific retail store or to try a
Coupons:Usually reduce the purchase price or offered as cash. Need to state
the offer clearly and
Role of Promotion
To communicate with individuals, groups or organizations to directly or
indirectly facilitate exchanges by informing and persuading one or more
audiences to accept an organization's products.
-Companies must communicate with
A service is an intangible product involving a deed, performance, or an
effort that cannot be physically possessed. Dominant component is
Includes rental of goods, alteration and repair of goods owned by customers,
Selecting Promotional Tools
A marketer must do the following while planning and sending
communications to a target audience:
Identify the AudienceIndividuals, groups, special publics or the general
public.Intermediaries vs Consumer
Scope and Importance of Personal Selling
In the US, 14 million people are employed in sales positions, according to
the department of labor.
Sales personnel include stockbrokers, manufacturing sales representatives,
real estate brokers etc.
Service Price Orientation (Level of Service)
1 Service oriented retailer strategy.2 Slim Profit margins, discount retailers,
off-price retailers, deep discounters.
Business to Business Channels
Very popular, especially for high cost items that need after sale support.
Fewer customers clustered geographically. This is a more common structure
than the direct channel in consumer ma
Buyers' Product Adoption Process
become aware of the product
seek information and is receptive to learning about
consider product benefits and determines whether
to try it
Cost oriented pricing:
$ amount or % added to cost. Need to know the desired margins etc. Easy to
Cost-plus pricing Cost calculated then a % added. Costs, overhead may be
difficult to determine. Establish the # of units to produce, calculate t
Categories that Effect the Consumer Buying Decision Process
A consumer, making a purchase decision will be affected by the following
The marketer must be aware of these factors in order to develop an
Channel members may disagree on the best methods to attain goals.
Inevitable when individual short run goals are not compatible. Can occur
between firms at the same level, or between firms at different levels. Want to
maximize profits and
Handout.Loved the Ad. May (or May Not).
Since there is no direct feedback loop, it is hard to determine the
effectiveness of an advertising campaign. Many other factors effect sales.
Handout.Mercedes-Benz Tries Out Humor, Youth
TM = Younger consumers, nee
Elements of the Personal Selling Process
No 2 salespersons use exactly the same sales method, but it is generally a
seven step process:
Prospecting and EvaluatingSeek names of prospects through sales records,
referrals etc., also responses to advertisemen
Paid form of non personal communication about an organization or its
products that is transmitted to a target audience through a mass/broadcast
Advantages and disadvantages:
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Scope and Imp
First question is whether to brand or not to brand. Homogenous products are
difficult to brand (Not Purdue, Robinson Brick). Branding policies are:
Individual Branding: Naming each product differently P&G, facilitates
Benefits of Branding
Provides benefits to buyers and sellers
Help buyers identify the product that they like/dislike.
Helps reduce the time needed for purchase.
Helps buyers evaluate quality of products especially if unable to
BA 800 Strategic Management & Business Policy
2002 : The 100th Anniversary
Instructor : Thakol Nunthirapakorn, Ph.D.